USD consolidates gains into the weekend on solid Economic Data.
·U.S. Dollar Trading (USD) gave a little back on Friday after a week of strong gains. US Data on Friday came is mostly as expected with Core PCE price index coming at 0.2% m/m, Personal spending 0.2% m/m and personal income 0.2% m/m. Stronger Chicago PMI of 49.1 vs 48.5 expected had a muted reception as did a positively revised Michigan Consumer sentiment of 59.8. In US share markets the NASDAQ was up 14.34 points (0.57%) and the Dow Jones was down slightly 7.9 points (-0.06%). Crude Oil closed up $0.73 ending the New York session at $127.35 per barrel. Looking ahead, ISM Manufacturing Index and ISM Manufacturing Prices are out today.
·The Euro (EURO) traded at weekly lows after April German Retail Sales came in much lower at -1.7% vs. 0.6% expected. The single currency rebounded with commodities late in the day helped by stronger Euro-zone CPI flash estimates of 3.6% vs. 3.5% forecasted. Overall the EUR/USD traded with a low of 1.5461 and a high of 1.5570 before closing the day at 1.5555 in the New York session. Looking ahead, ECB president Trichet speaks today at the Central Bank’s 10th Anniversary conference.
·The Japanese Yen (JPY) was little changed after relatively weak data on Friday. Figures made public included Core April CPI coming in at 0.9% vs. 1.0% expected and April Unemployment rate coming in higher at 4.0% vs 3.9% forecasted. USDJPY traded with a low of 105.23 and a high of 105.74 before closing the day around 105.50 in the New York session.
·The Sterling (GBP) gapped lower Monday morning on weekend reports that a Large UK lender Bradford and Bingley will issue a profit warning and its Chief executive will resign. On the data front, GFK consumer confidence came in at -29 vs. -25 forecasted. Overall the GBP/USD traded with a low of 1.9683 and a high of 1.9824 before closing the day at 1.9822 in the New York session. Looking ahead, Halifax House Price Index and Manufacturing PMI out today.
·The Australian Dollar (AUD) traded in a tight range below 96 cents on broadly stronger greenback, although any further downside moves were limited as XAU rebounded by $10. AUDJPY was generally supported consolidating above the 100 level. Overall the AUDUSD traded with a low of 0.9510 and a high of 0.9571 before closing the day at 0.9555 in the New York session. Looking Ahead, April Retail Sales m/m expected at 0.2% along with TDMI inflation gauge.
·Gold (XAU) gained after heavy losses during the weak up $10.10 an ounce. Overall trading with a low of $870 and high of $888.50 ending the New York session at $887.30 an ounce.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.5410 |
1.5462 |
1.5555 |
1.5669 |
1.5761 |
|
USD/JPY |
103.89 |
104.61 |
105.50 |
105.88 |
106.55 |
|
GBP/USD |
1.9614 |
1.9685 |
1.9740 |
1.9852 |
1.9870 |
|
AUD/USD |
0.9430 |
0.9511 |
0.9550 |
0.9581 |
0.9639 |
|
XAU/USD |
860.50 |
870.45 |
887.00 |
909.85 |
930.90 |
·Euro – 1.5555
Initial support at 1.5462 (May 30 low) followed by 1.5410 (May 6 resistance). Initial resistance is now located 1.5669 (May 29 High) at followed by 1.5761 (May 28 high).
·Yen – 105.50
Initial support is located at 104.61 (May 29 low) followed by 103.89 (May 28 low). Initial resistance is now at 105.88 (May 29 high) followed by 106.65 (Feb 28 high).
·Pound – 1.9740
Initial support at 1.9674 (May 29 low) followed by 1.9614 (May 21 low). Initial resistance is now at 1.9852 (May 23 high) followed by 1.987 (76.4% retracement of 2.00027-1.9363)
·Australian Dollar – 0.9550
Initial support a 0.9510 (May 30 low) followed by 0.9543 (61.8% retracement 0.9291 to 0.9655). Initial resistance is now at 0.9581 (May 30 high) followed by 0.9639 (May 29 high).
·Gold – 887
Initial support at 870.45 (May 30 low) followed by 860.5 (May 14 low). Initial resistance is now at 909.85 (May 28 high) followed by 930.9 (May 27 high).
